Recession

Why The Fed Will Fail Once Again

"The Fed’s bungling should come as no surprise... The Federal Reserve has done almost nothing right for at least the past twenty years, if not longer."

Greenwich Endeavors's picture

The Fed just raised the Fed Funds rate by 25 bps to 1.25%.  However, long term rates rallied by 50 bps!  Mohamed A. El-Erian, bond market veteran and specialist wrote today that the Fed should continue to raise rates “and that policy makers should take seriously the growing risk of future financial instability, especially in the absence of a carful normalization”.

James Rickards: The Fed Is Going To Cause Recession

"[The Fed is hiking rates] to prepare for the next recession... they know a recession will come sooner rather than later... My estimate is that they’re not going to get there. The recession will come first. In fact, they will probably cause the recession that they’re preparing to cure."

The Fed's Third Mandate Is Official

"The FOMC wants stocks to stop rising, and they will keep raising rates until they stop... It is stunning that markets are not taking these words more seriously..."

Fed's Dudley Had Some Worrying Remarks During A Closed-To-The-Press Session

"...when financial conditions ease—as has been the case recently—this can provide additional impetus for the decision to continue to remove monetary policy accommodation." Said otherwise, Dudley wants financial conditions tighter, and stocks lower, and will keep hiking rates until the market reacts accordingly.

Perfect Storm 2.0 - Will The Auto Industry Ever Be The Same Again?

The automotive industry needed every single ingredient listed below to reach last year’s record setting sales number. However, something has changed. Well, in reality, everything has changed. The set of ingredients that perfectly fueled the recovery have all reversed and now power the perfect storm...

BIS Lists The Four Biggest Threats Facing The Global Economy

i) inflation could choke the expansion by forcing central banks to tighten policy; ii) serious financial stress could materialise as financial cycles mature; iii) consumption might weaken under the weight of debt, and investment might fail to take over as the main growth engine; iv) a rise in protectionism could challenge the open global economic order.